The Singapore government has issued a new mandatory retrenchment notification. Under this new order, from November 1, employers with at least 10 staff members must notify the government of all retrenchments, regardless of the number of employees affected.
With COVID causing a dent in the economy, several companies were forced to resort to retrenching staff as a cost-cutting measure. Ministry of Manpower (MOM) revealed that retrenchments were much higher in the quarter (April – June 2021) where 2,500 people were laid off as compared to 2,270 people in the (Jan to March) period.
The current situation has become all the more difficult for working parents in Singapore who are under extreme stress due to added workload, including child care.
Here’s what the new retrenchment order states.
Bosses To Share Details About Retrenched Employees To Govt
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From November 1, 2021, bosses of companies with more than 10 staff members will have to inform MOM every time they decide to retrench a staff member.
At present, the rule is that bosses only need to inform MOM when they retrench five or more staff members and within a period of six months.
Here’s what companies will have to do from November this year:
File a mandatory retrenchment notification within five working days after they have issued the retrenchment notice to the staff member.
It can be done through MOM’s website, where one can submit the details of the retrenched staff member.
Here are the details that you will require to submit the information
- Company name and UEN
- Company contact person details
- Name of union (if the company is unionised), and whether the union was consulted
- The number of employees on the date of submission of the retrenchment notification to MOM. This includes all employees, i.e. Singaporeans, Permanent Residents and foreigners.
- Details of employees to be retrenched
- Provision of employment facilitation assistance
- Payment of retrenchment benefits and quantum.
This new system is expected to provide support to retrenched employees and also help companies manage their staff better.
Support to staff will be provided
- MOM mentioned that the new system will “enable the tripartite partners”, the Employment and Employability Institute, Workforce Singapore, and the Employment and Employability Institute, along with other agencies, to reach out to affected local employees. They will be able to provide better support in terms of employment and job search.
- The retrenched employees will also be offered career coaching by the organisations so that they can better fit into a new job.
- They can attend job fairs and networking events to improve their chance of meeting their next employer.
So the purpose of the new system is not just better data collection, but to extend help to retrenched employees at the right time.
Companies will also benefit from the new system
In case you are thinking, the new retrenchment order has nothing for the companies, you are mistaken. Here’s how companies will get benefitted.
- It will allow the government to step in when a company is facing troubles and is at risk of retrenching even more employees
- Companies will no longer have to keep track of who the fifth retrenched employee of a six-month period will be as they will now be reporting every retrenchment to the government.
MOM clearly mentioned that employers will have to be responsible and extremely fair when they are conducting these retrenchment exercises.
Penalty for non-compliance
There’s a heavy penalty, in case a company decides not to report any retrenchment under the new system. They will have to dish out a $2,000 fine!
Senior Minister of State for Manpower, at a virtual media conference, informed that MOM introduced the new order after receiving feedback from some firms that flouted the existing rule. It goes without saying that working parents in Singapore will also be affected by the new order.
Better Financial Planning Is The Need Of The Hour For Working Parents In Singapore
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Over the years, there has been an increasing rise in the population of dual-income families in Singapore. Here are some statistics to help you understand the workforce scenario better.
- It was seen that in 2000, around 45.9% of these families were dual-income couples. This proportion increased by 19.7 percentage points to 65.6% in 2015.
- The proportion of families in which only the father worked decreased from 47.3% to 29.2% from 2000 to 2015. It meant that more women were out there working.
The rise in the dual workforce can be attributed to several factors. For instance, with flexible work arrangements, non-statutory leave and child care benefits, employees are finding it easier to manage work-life balance.
Fends off the pandemic blow
But, a lot has changed due to the pandemic. Singapore recorded its sharpest fall in total employment in more than two decades in 2020. Massive retrenchments were seen in the construction and manufacturing sectors on the island. People are under extreme stress to find a new job and also cope with the income loss situation amid the pandemic.
According to the Forbes report, coronavirus resulted in the highest job losses for women, erasing almost a decade long work of progress across the world.
Unfortunately, an ILO report projected a dismal picture and said that fewer women than men will regain employment in the COVID-19 recovery phase.
Thus, keeping in mind the uncertain economic situation, it is important to work on proper financial planning.
Hope you are saving well for your future!
Source: MOM
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